MIRPUR (AJK): Azad Jammu and Kashmir (AJK) on Monday presented a record budget of Rs286 billion for the fiscal year 2026-27, reportedly its largest budget in the history, and a reflection of the government’s commitment to public welfare, economic development and social justice.
Presenting the budget in the AJK Legislative Assembly held in the state capital of Muzaffarabad, Finance Minister Chaudhry Qasim Majeed said the total outlay for FY 2026-27 has been set at Rs286 billion, compared to the revised budget of Rs262.165 billion for the outgoing fiscal year, showing an increase of Rs23.835 billion.
The budget includes Rs36 billion for development expenditures and Rs250 billion for non-development expenditures. The government expects to generate Rs75.2 billion in tax revenue, while the federal variable grant has been estimated at Rs146 billion.
Following the federal budget announcement, the finance minister also announced a seven percent increase in the salaries of government employees. Highlighting the government’s priorities, Majeed announced a landmark Education Package 2026 aimed at strengthening the education sector across the AJK. The package includes the creation of 3,308 new teaching positions, rationalisation of 1,629 posts, upgradation of 709 educational institutions, strengthening of more than 300 schools, and establishment of 109 new educational institutions. An additional 726 posts have also been created in higher education institutions.
The finance minister said the government has allocated substantial resources to improve healthcare services. Several Basic Health Units will be upgraded to Rural Health Centres, while Rural Health Centres in selected areas will be elevated to Tehsil Headquarter hospitals. He also announced the establishment of a modern cardiac hospital at Chakswari and increased stipends for house officers and postgraduate medical trainees.
In the law and order sector, the government approved the establishment of a Counter Terrorism Department (CTD) within the AJK Police, with 473 new positions to be created. The budget also includes a comprehensive martyrs’ package for police personnel, offering compensation ranging from Rs100 million to Rs200 million depending on rank, along with continued salary and benefits for the families of fallen officers until their retirement age.
The AJK minister stated that the Annual Development Programme (ADP) for FY 2026-27 has been set at Rs36 billion, including Rs1 billion in foreign assistance. Of the total ADP, 31 percent will be spent on social sectors, 12 percent on productive sectors, and 57 percent on infrastructure development.
Major infrastructure initiatives include construction of 671 kilometres of roads, rehabilitation and upgrading of 394 kilometres of roads, construction of RCC and Bailey bridges, expansion of electricity transmission networks, installation of new transformers, and provision of 30,000 new electricity connections.
The government also announced plans to expand information technology infrastructure, establish IT Excellence Centres in all districts, digitise land records, introduce E-Stamping services, and expand telehealth facilities across the region.
To promote agriculture and livestock, the budget proposes distribution of 100,000 fruit plants, establishment of demonstration plots for ginger, turmeric and soybean cultivation, provision of grants for the purchase of 600 high-breed cows, and distribution of 70,000 poultry birds among widows and underprivileged women.
For youth empowerment, the government plans to provide interest-free loans to 2,267 skilled individuals under the Prime Minister’s Youth Loan Programme and to 30,000 beneficiaries through Akhuwat Islamic Microfinance.
The finance minister said the government had also introduced Climate and Gender Budget Tagging for the first time, aligning public spending with climate resilience and gender equality objectives.
Concluding his speech, Majeed expressed confidence that the budget would accelerate socio-economic development, create employment opportunities, improve public services, and strengthen the foundations of a prosperous and self-reliant Azad Kashmir.
Soon after the budget speech, the Legislative Assembly approved the budget for the next fiscal year and the revised estimates for the current fiscal year on the motion of the finance minister, without any debate, by suspending the relevant Rules of Business of the Assembly.
Earlier, the 42nd meeting of the cabinet, chaired by AJK Prime Minister Faisal Mumtaz Rathore, was held at the PM Secretariat. The cabinet approved the Revised Budget 2025-26 and the Estimated Budget 2026-27. The Finance Bill 2026 was also approved in the cabinet meeting.
